317 Jessie St, Joliet IL 60433

317 Jessie St, Joliet, IL 60433

Singlefamily: 3 bedrooms , 1 bathroom

Year built: 1931, Size: 1215 SF

Investment strategy: Rental Property

Purchase Price$ 209,900

Rent$ 2,145/mo

Monthly Cash Flow$ 206

Cash on Cash Return4.83 %

Financial Analysis

Cash on Cash Return	4.83 %
Internal Rate of Return (IRR)	11.92 %
Capitalization Rate	8.21 %
Gross Rent Multiplier (GRM)	8.15
Debt-coverage Ratio (DCR)	1.17
Operating Expense Ratio (OER)	30.95 %
After Repair Value	$ 209,900

Financial Breakdown

Purchase Price	$ 209,900
Purchase Costs	$ 9,108
Repair/Construction Costs	$ 0
Total Capital Needed Total Capital Needed Includes all projects costs (except selling costs). Total Capital Needed Includes all projects costs (except selling costs).	$ 219,008
Financing	$ 167,920
Total Cash Needed Cash out of Pocket Shows rehabber's cash outlay. Cash out of Pocket Shows rehabber's cash outlay.	$ 51,088
Cash at Closing Cash at Closing This number includes down payment and loan points. Cash at Closing This number includes down payment and loan points.	$ 45,338
Cash During Rehab Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction. Cash During Rehab Shows the cash amount remaining to fund the purchase and rehab/construction.	$ 5,750

Operating Analysis

Rent	$ 2,145/mo
Gross Operating Income (GOI)	$ 24,968
Total Expenses	$ 7,728
Net Operating Income (NOI)	$ 17,240
Annual Debt Service	$ 14,772
Cash Flow Before Taxes (CFBT)	$ 2,468
Income Tax Liability	$ -558
Cash Flow After Taxes (CFAT)	$ 3,026

Welcome to this charming, recently updated home, perfect for comfortable family living! Featuring A Home Warranty, Newer Goodman furnace, New Roof On Home and Garage 2024, 3 spacious bedrooms and 1 full bath with a brand-new vanity and sink, this home has a mix of beautiful hardwood floors and new carpet throughout. The huge master bedroom boasts new carpet and plenty of space for relaxing. Set on a generous double lot, the property includes both a large family room and living room, offering versatile living spaces. The spacious kitchen is designed with a large eating area, ideal for gatherings and casual dining. Outdoor living is enhanced with a 26x8 concrete patio and an 18x14 brick paver patio with a lovely Pergola, perfect for entertaining. Ceiling fans add comfort throughout the home, while the oversized 2.5-car garage provides abundant storage and parking space. Freshly painted, this home is move-in ready and waiting for you!

Purchase Price	$ 209,900
Address	317 Jessie St , Joliet, 60433, IL
MLS^® #	12213536
Listing Agent	Steve W Sweedler
Year Built	1931
Type	Singlefamily
Size	1215 SF
Bedrooms	3
Bathrooms	1

Property History

Date	Price	Event
12/4/2024	209900	Price Changed
11/28/2024	214900	Price Changed
11/19/2024		Listing removed
11/18/2024	217900	Listed
11/6/2024	219900	Price Changed
11/1/2024	224500	Listed
9/15/1999	82000	Sold

Annual Property Operating Data

Incomes		% of GOI
Gross Scheduled Income Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents. Gross Scheduled Income (GSI) Represents the total of monthly rents for the particular property, including the potential rents from vacant units and uncollectable rents.	$ 25,740
Total Gross Income	$ 25,740
Vacancy loss Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants. Vacancy and Credit Loss Part of the potential rental income that is lost because of unoccupied units or uncollectable rent from tenants.	$ 772
Gross Operating Income Gross Operating Income (GOI) An actual income which is expected to be collected in the property. Gross Operating Income (GOI) An actual income which is expected to be collected in the property.	$ 24,968	100.00 %
Expenses Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation). Operating Expenses Expenses necessary for maintaining the property and ensuring its continued ability to produce income (doesn't include mortgage payments or depreciation).
Insurance	$ 1,500	6.01 %
Property tax	$ 6,228	24.94 %
Total Expenses	$ 7,728	30.95 %
Net Operating Income Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses. Net Operating Income (NOI) Important measurement calculated as gross operating income minus operating expenses.	$ 17,240	69.05 %

Cash Flow (Year 1)

Net Operating Income	$ 17,240	69.05 %
Annual Debt Service	$ 14,772	59.16 %
Cash Flow Before Taxes (CFBT) Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash for a certain property (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ 2,468	9.89 %
Income Tax Liability	$ -558	-2.24 %
Cash Flow After Taxes (CFAT) Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property. Cash Flow All the inflows and outflows of cash (including mortgage payments). We can calculate cash flow before taxes (CFBT) or cash flow after taxes (CFAT) which is CFBT minus any tax liability arising from the operation of the property.	$ 3,026	12.12 %

Operating Ratios

Operating Expense Ratio Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI). Operating Expense Ratio Ratio of the operating expenses to the gross operating income (GOI).	30.95 %
Break-Even Ratio Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less. Break-Even Ratio (BER) Another benchmark used by mortgage lenders, estimating how vulnerable is a certain property to defaulting on its mortgage if part of the rental income is declined. Most of the lenders are looking for BER of 85% or less.	90.11 %

Financial Measures

Net Present Value Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog. Net Present Value (NPV) Probably the best measure of any investment thanks to its complexity; taking into account all future cash flows including the selling price, and it converts all these amounts to their present values using discount rate required by the investor. More information and an example on the blog.	$ 119,426
Internal Rate of Return Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero. Internal Rate of Return (IRR) Rate which an investment will return over the estimated period of ownership. It is in fact the discount rate that produces NPV of zero.	11.92 %
Profitability Index Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0 Profitability Index Similar to NPV, also calculates with the present values of future cash flows and discount rate. It shows whether the present value of the cash flows is worth the initial investment. Good investment should be above 1.0	3.34
Annual Depreciation	$ 6,106

Holding period of 30 years and discount rate of 5.00% were used for calculation of NPV and IRR. The rest of the financial measures are for the 1st year only and therefore don't provide such an exact information.

Investment Return Ratios

Cash on Cash Return Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money. Cash on Cash Return Ratio between annual cash flow before taxes and the total initial investment, expressed as a percentage. It does not take in account the future value of money.	4.83 %
Return on Investment Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year. Return on Investment Very similar to Cash on Cash Return, but also takes in account appreciation of the property in the first year.	17.16 %
Capitalization Rate Capitalization Rate Calculated as ratio of the net operating income and the value of the property. Capitalization Rate Calculated as ratio of the net operating income and the value of the property.	8.21 %
Gross Rental Yield Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment. Gross Rental Yield Used for a particular property or also as a market indicator when using median values of rent and house prices - counted from gross scheduled rent and initial investment.	12.26 %
Gross Rent Multiplier Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income. Gross Rent Multiplier (GRM) Counted as a ratio of market value of the property and gross scheduled income.	8.15

Financing		% of ARV
Down Payment	$ 41,980	20.00 %
HomeStyle	$ 167,920	80.00 %
Loan to Value Ratio Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price. Loan to Value Ratio Shows sum of all purchase and rehab loans divided by purchase price.		80.00 %
Loan to Cost Ratio Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs). Loan to Cost Ratio Shows sum of all purchase and rehab loans to construction cost (purchase price + repairs).		80.00 %
Debt Coverage Ratio		1.17

HomeStyle Financing of: Purchase + Repairs ($ 209,900)
Type	Amortized
Loan Amount	$ 167,920
Down payment (20%)	$ 41,980
Amortization	30 years
Interest Rate	7.99 %
Monthly Payment	$ 1,230.97

This chart shows the process of accumulation of investor's equity. There is some equity created right at the beginning with the rehab/construction and later investor's equity is rising by paying off the principal of the loan and also by appreciation over the years. All the green parts is the cummulative equity belonging to the investor and the red part belongs to the lender.

Year	0	1	2	3	4	5	6	7	8	9	10	11	12	13	14	15	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30
Operational Analysis
Gross Scheduled Income	0	25,740	26,255	26,780	27,316	27,862	28,419	28,987	29,567	30,159	30,762	31,377	32,004	32,645	33,297	33,963	34,643	35,336	36,042	36,763	37,498	38,248	39,013	39,794	40,589	41,401	42,229	43,074	43,935	44,814	45,710
Vacancy Loss	0	772	788	803	819	836	853	870	887	905	923	941	960	979	999	1,019	1,039	1,060	1,081	1,103	1,125	1,147	1,170	1,194	1,218	1,242	1,267	1,292	1,318	1,344	1,371
Gross Operating Income	0	24,968	25,467	25,977	26,496	27,026	27,566	28,118	28,680	29,254	29,839	30,436	31,044	31,665	32,299	32,944	33,603	34,275	34,961	35,660	36,373	37,101	37,843	38,600	39,372	40,159	40,962	41,782	42,617	43,470	44,339
Expenses	0	7,728	7,883	8,040	8,201	8,365	8,532	8,703	8,877	9,055	9,236	9,420	9,609	9,801	9,997	10,197	10,401	10,609	10,821	11,037	11,258	11,483	11,713	11,947	12,186	12,430	12,679	12,932	13,191	13,455	13,724
Net Operating Income	0	17,240	17,585	17,936	18,295	18,661	19,034	19,415	19,803	20,199	20,603	21,015	21,436	21,864	22,302	22,748	23,203	23,667	24,140	24,623	25,115	25,617	26,130	26,652	27,185	27,729	28,284	28,849	29,426	30,015	30,615
Loan Payment	0	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772	14,772
Payment Interest Part	0	13,366	13,250	13,123	12,987	12,839	12,679	12,505	12,317	12,114	11,894	11,655	11,397	11,117	10,814	10,486	10,131	9,746	9,329	8,878	8,390	7,861	7,288	6,667	5,996	5,268	4,480	3,627	2,704	1,703	620
Payment Principal Part	0	1,406	1,522	1,648	1,785	1,933	2,093	2,266	2,454	2,658	2,878	3,117	3,375	3,655	3,958	4,286	4,641	5,026	5,442	5,893	6,382	6,911	7,484	8,104	8,776	9,503	10,291	11,144	12,068	13,068	14,152
Cash Flow
Repairs/Construction	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Cash Flow Before Taxes	-51,088	2,468	2,813	3,165	3,523	3,889	4,263	4,643	5,032	5,428	5,832	6,244	6,664	7,093	7,530	7,976	8,431	8,895	9,368	9,851	10,344	10,846	11,358	11,881	12,414	12,958	13,512	14,078	14,655	15,243	15,844
Depreciation	0	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106	6,106
Taxes	0	-558	-443	-323	-199	-71	62	201	345	495	651	814	983	1,160	1,345	1,539	1,741	1,954	2,176	2,410	2,655	2,913	3,184	3,470	3,771	4,089	4,424	4,779	5,154	5,551	5,972
Cash Flow After Taxes	-51,088	3,026	3,256	3,488	3,723	3,960	4,200	4,442	4,687	4,933	5,181	5,430	5,681	5,932	6,185	6,437	6,689	6,941	7,192	7,441	7,689	7,933	8,174	8,411	8,643	8,869	9,088	9,299	9,501	9,692	9,871

Note: All amounts in the table above are in $

Resale Price Evaluation Methods

The property is sold after 30 years. Below is the resale price calculated using different methods.

Capitalization (8.21%) & NOI	$ 372,901
Appreciation (3.00%)	$ 509,482
Gross Rent Multiplier	$ 372,539

Sale Proceeds

Projected Selling Price	$ 372,901
Costs of Sale (3.50%)	$ 13,052
Net Sale Proceeds Before Tax	$ 359,849

In the resale analysis we do not include any calculation for taxes that might be owed on sale of the property. The tax laws for the resale are rather complex and subjected to frequent changes.

Net Assets and Yield

Net Assets
Sale Proceeds Before Tax	$ 359,849
Investor Cash Outlay	$ 51,088
Net Assets	$ 308,761
Average Yield
Annual Net Assets	$ 10,292
Average Cash Flow (After Taxes)	$ 6,204
Average Annual Gain (After Taxes)	$ 16,496
Average Annual Yield (After Taxes)	7.86 %

This charts shows Net Present Value (NPV) when property is sold in various years, i.e. when sold in 5th year, the NPV is calculated from 5 years of Cash Flow (including the selling price) and this NPV is displayed in year 5. Optimal holding period can be estimated, using this method - when NPV is the highest. Please note that appreciation growth can change these numbers greatly. It sometimes makes sense to sell the property even before the end of the mortgage term.

Property Report: 317 Jessie St, Joliet RENTAL

Property Report :

317 Jessie St, Joliet, IL 60433

Executive Summary